The Liberty area was settled beginning in 1859 as an outgrowth of Eden. In 1892, a separate townsite was laid out[4] and a separate ward of The Church of Jesus Christ of Latter-day Saints (LDS Church) organized.[5] The name came from John Freeman's remarks that both cattle and people took "full liberty" in the area.[6] Settlement happened gradually, homes built one at a time rather than in tract housing. Traditionally a farming and ranching community, Liberty has developed in recent years into a recreational community and commuter town for the Ogden area.

As of the census[3] of 2010, there were 1,257 people residing in the CDP. There were 437 housing units. The racial makeup of the CDP was 96.2% White, 0.7% American Indian and Alaska Native, 1.0% Asian, 0.1% Native Hawaiian and other Pacific Islander, 0.9% from some other race, and 1.2% from two or more races. Hispanic or Latino of any race were 2.5% of the population.